First-class stamp to cost 37 cents starting Sunday

The boost in the first-class rate to 37 cents was approved in February after months of hearings by the independent Postal Rate Commission.

A variety of other rates, including post cards, parcel post and priority mail, go up at the same time. Postal Vice President Azeezaly Jaffer said the increases would cost the average person about 45 cents extra a month.

Postmaster General John Potter has promised rates won't go up again until at least 2004.

The increase comes none too soon for the cash-strapped Postal Service, which lost $1.6 billion last year, even before the terrorist attacks cost it hundreds of millions in added expenses.